Lobby pressures CBK to reopen Charterhouse Bank

Centre for Human Rights and Democracy Director Ken Wafula addresses a past presser at his office in Eldoret town on January 7, 2015. He has called for the reopening of Chaterhouse Bank. PHOTO | JARED NYATAYA | NATION MEDIA GROUP

What you need to know:

  • The group’s Executive Director Ken Wafula said CBK had not given Charterhouse or the public any reason as to why the bank should remain closed.

A human rights lobby has petitioned the Central Bank of Kenya to reinstate Charterhouse Bank Ltd’s operating licence and reopen it unconditionally.

The Eldoret-based Centre for Human Rights and Democracy said there was no justification or convincing reasons for the continued closure of the bank.

In a statement, the group’s Executive Director Ken Wafula said CBK had not given Charterhouse or the public any reason as to why the bank should remain closed.

“The Central Bank of Kenya had alleged that Charterhouse Bank was engaging in banking malpractices, mainly money laundering and tax evasion. These claims have remained just that, claims," the statement read.

“They have never been substantiated. Subsequent inquiries and investigation by independent institutions have not only failed to find incriminating evidence against Charterhouse but have also gone ahead to recommend the re-opening of the bank,” the press statement continued.

On June 23, 2006, CBK placed Charterhouse under statutory management.

According to Mr Wafula, the Banking Act requires that such a move is valid only for 12 months unless circumstances dictate for a short extension.

“It is now 10 years since the instrument of statutory management was invoked and CBK is still silent,” the statement added.

He also noted that the parliamentary committee on finance recommended that the bank be reopened.

“Kenya Revenue Authority through its former commissioner Michael Waweru told the parliamentary committee that it had no objection to Charterhouse’s reopening,” they said.

Mr Wafula added that nobody had been charged.